Niti Aayog is performing vital functions that are fundamentally different from Planning Commission

Among many functions that Niti Aayog performs, three stand out: promotion of cooperative, competitive federalism; assisting the central government in policy making; and serving as the government's think tank.TNN | January 02, 2017, 14:00 IST

Niti Aayog turned two years old yesterday. The anniversary offers an opportunity to reflect on how the new institution differs from its predecessor, the Planning Commission, and what functions it performs.

Two key activities of the Planning Commission had been to prepare and implement the Five Year Plans and to allocate financial resources to states. Neither of these activities forms a part of the mandate of Niti Aayog. The Twelfth Five Year Plan, which will conclude on March 31 this year, will be India's last Five Year Plan.

Likewise, Niti Aayog does not allocate any financial resources to states. The 14th Finance Commission raised the share of states in the divisible pool from 32% to 42%, leaving no additional funds for allocation to states through Niti Aayog. The annual resource allocation exercise that brought state chief ministers to the doorstep of the Planning Commission is now a thing of the past.

Among many functions that Niti Aayog performs, three stand out: promotion of cooperative, competitive federalism; assisting the central government in policy making; and serving as the government's think tank. These three functions complement each other instead of being mutually exclusive.

The Governing Council of Niti Aayog, which includes all state chief ministers and lieutenant governors of the Union territories, set in motion the first function at its maiden meeting on February 8, 2015. It appointed three subgroups of chief ministers to advise the central government on the subjects of Centrally Sponsored Schemes, Skill Development and Swachh Bharat Mission. It also set up two task forces at the Aayog on Agricultural Development and Elimination of Poverty , with parallel task forces on each subject constituted in the states and Union territories.

Assisted by the Aayog, the subgroups completed their work and submitted the reports in relatively short time. The two task forces followed. The recommendations in the five reports have been either implemented or are under consideration.

The Aayog has also helped promote reforms in the states. It has formulated a model land-leasing law, which Madhya Pradesh has adopted and Uttar Pradesh has substantially incorporated into a preexisting law. Several other states are actively considering adopting the model law.

The Aayog is also leading a campaign to bring about major reforms in agricultural marketing. Furthermore, it has taken the initiative to help resolve and expedite decisions on numerous issues of states pending for months with various central ministries. It also identifies and spreads the best practices across states in various areas through regular interactions with state officials from relevant ministries.

In its policy making role at the Centre, the Aayog has taken the initiative to identify numerous sick Public Sector units for closure. Action on 17 such units is under way. The Aayog has also identified several functioning units for strategic disinvestment. Finance ministry must now move ahead with the actual sales of these units.

A big bang reform the Aayog has proposed is the replacement of the Indian Medical Council Act, 1956, by a Medical Education Commission Act to overhaul medical education in India.The proposed Act would require entrance and exit examinations and replace input norms in the assessment of medical colleges by outcome norms. A comprehensive National Energy Policy draft is ready to be placed in public domain for wider consultation.The Aayog is also working on the creation of 20 world-class universities and reform of the University Grants Commission Act, 1956 and All India Council of Technical Education Act, 1987. It has also championed the launch of Coastal Employment Zones to accelerate the creation of well-paid jobs.

As a part of its think tank function, the Aayog has brought out a book of best practices, conducted workshops of state officials to spread these practices, collaborated with think tanks, created the utility India Energy Security Scenarios 2047, sponsored policy research and published several occasional papers. It is also in the process of bringing out the 15-year Vision, 7-year Strategyand 3-year Action Plan documents.

It also organises the Transforming India lecture series featuring such high-profile speakers as Tharman Shanmugaratnam, Deputy Prime Minister of Singapore and Bill Gates. The Prime Minister, the entire Cabinet and the top bureaucrats attend these lectures.

The Aayog has also led the way for the creation of a vibrant innovation and entrepreneurship ecosystem in the country through its Atal Innovation Mission. The mission will soon establish tinkering labs in more than 200 schools as well as several incubators to promote innovation and entrepreneurship.

Organisationally , the Aayog had inherited 1,200 positions from the Planning Commission, which it downsized to 500.Subsequently , it has taken the initiative to appoint approximately 45 young professionals and a dozen senior officers from outside. These additions have brought great energy to the institution.

When the Prime Minister invited me to join the Niti Aayog two years ago, the excitement of assisting him in the transformation of India overwhelmed the fear of taking up the challenge. I instantly accepted his generous offer. I feel proud, two years later, of what the hard-working staff of Niti Aayog have accomplished. I hope we can maintain this momentum as we step into our third year.

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